tv Markets Now FOX Business October 24, 2013 11:00am-1:01pm EDT
lot. our first guest coming up says what is going on with these obamacare websites is a catastrophic failure. this is a guy who would know. he is standing by. he will tell us how he thinks things went so wrong. still not satisfied? germany calling the u.s. ambassador in. there is some huge business implications for this story. we will talk about that. burned again. twenty years and running. the coffee is too hot. buying stake in an athlete's career. there is a company that has launched this idea. why would you ever want to buy stock in an athlete to begin with? we will ask the guy that came up
with this idea later in the hour. that is all coming up on markets now. ♪ dagen: doggie vacation. they just raised about 15 million in additional financing. that is a big chunk of change. connell: is that better business than buying stock in an athlete? dagen: guess, probably. nicole is the new york stock exchange with the very latest. nicole: good morning. we are seeing the markets without the aeros. less than 200 points away from the all time highs that we have been seeing. yesterday we stopped the winning streak. it was our first down day in six. look at that, we are back in the
green again. we do have retailers and drugs looking good today. we got good economic news from china. we continue to get earnings. we are watching forward closely. they talked about global growth going forward. ford is up 1.4%. doing well with the ford focus. back to you. dagen: thank you, nicole. connell: the big story in d.c. today involves these contractors. they are facing some tough questions on capitol hill. dagen: basically a website that does not work front to back. rich edson is live with the very latest. rich: a lot of finger-pointing. we get this all the time on capitol hill.
the lead contractor on this responsible for the exchanges in 36 states said it had eight technical reviews. the group says that the administration's decision to disable anonymous shopping, in other words, you can go onto the website without putting your name in and personal details, that glitch, that change created all of these problems. at this point, you are still getting tough questions from lawmakers. >> we, too, were ready to process. our first awareness of difficulties was ten-one. we attempted to do key entry. >> you did not test it prior? >> no. no, sir.
>> there is also this idea that this administration and contractors scrap the website. rewriting 5 million lines of code. 300 employees working on that would very like leaf lock out if had to rewrite everything. back to you. connell: thank you very much. let's bring in nick selby. a number question. let me start with this idea of anonymous shopping. instead of being able to go in there and browse on the website, first you had to set up an account. they are saying that led to many of these problems.
is there any reason why the website would have been set up that way? >> when you go out and buy other complicated things online, that is exactly what you do. what they want is to find out how much it costs. i can give them a pretty good estimate. it could have led to a lot of the problem we are seeing right now. i think that it highlights something that is very
important. there is about 50 people in the world that truly understand how a website will this big works. when you have something this complex than this big, things are going to go wrong. connell: why? why is it so complex to set something like this up? >> well, there is 170 different insurance companies that they are trying to get their databases to talk to this site. when you are trying together da, you are trying to make a translation made later between all of those different things. this is very complicated.
things get very slow. very complicated very quickly. connell: it was not sufficient we tested. what should happen next? is the, you know, incremental fixes that seem to be the answer right now, is that the way to go? >> i would not do and incremental fix. we are really hearing a divergence of messaging. we are hearing people calling it a glitch. a glitch is when you are driving in the car caught you are listening to satellite radio and you go through a tunnel and it cuts out.
i am not saying, when you look at the contractors who are involved in this, you see that there are a number of them. we know that the front end is not under attack. i would say when you have terrible performance issues coupled with complete non-understanding of what is going on in the backend and people pointing at one another over what went wrong, i have never not see that as well. i say start over. let's get this to the users. government can do websites. if you take a look right now, they tell you exactly how to do it. government and contractors can do this, they just did not do this. connell: we will check back with you on this.
thank you for coming on today. >> thanks a lot. dagen: a lot of these government websites look like stuff that was built in the 90s. it is exactly the same it has been for more than a decade. connell: there are some examples in his view. he does this for a living. more uncertainty out of washington. do not expect the confirmation hearings for janet yellen to take place until at least the middle of november. republicans critical of the policies and could attack her as a proponent of the stimulus plan. dagen: phil orlando is chief equity market analyst.
you already have uncertainty. if this hearing is delayed, what does that do to the market? >> the good news is the uncertainties for larry summons are off the table. janet yellen was a better choice. she gets reviewed by the senate banking committee. that has to go to the full senate. you may not get a clean up or down vote until closer to christmas. connell: he is a controversial figure. you can see how that can get all wrapped up in washington politics. if janet yellen cannot get through, what would someone expect from the president?
what are they expecting? >> we believe that she will get through. she was a much better choice. she is a much safer pick. the market, ultimately, likes her selection. they ultimately will confirm her. there is always this back and forth in terms of the republicans that may think -- and the democrats that are much more comfortable with her monetary policy. dagen: i know you are in equities strategist. if you have treasuries that are in a no man's land for the time being, what you do with them? >> our view has been underweight treasuries for a while now.
we still believe that treasuries will be back in the papers that neighborhood over the course of the next several months and on their way to 4%, 5% over the next few years. it is the point in the cycle where pes starts to expand. we can still see the expansion continue up over the next couple of years. >> the s&p 500 is up. the party is not over. we will grind higher over the next couple of years.
dagen: germany's leader fired up that her phone may have been monitored by our nsa. not satisfied by what the president told her yesterday. connell: mcdonald's coffee is too hot. we will have more on that coming up. stuart: more folks do not think that they will ever retire. we will take a look at the oil market. we do like taking a look at oil when it is below $100 a barrel. ♪ [ male announcer ] it is more than just a new car...
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we are focusing more on the services businesses. today, it is down almost 9%. angie's list, shares have been very volatile. down 15% at one point. their membership renewal rates have dropped. they make norton antivirus software. don't forget that pc demand has been weakening. dagen: thank you. twenty years later and mcdonald's is back in the hot seat. a woman is suing the fast food chain after spilling hot coffee on herself. the president is reporting that the california woman is suffering from second-degree burns and is still having trouble falling asleep because of the burning sensation that will not go away. a woman was awarded $3 million
for her serious coffee spill injuries that required skin grafts. we will check on whether that award was reduced. i would guess that it was. we need to check on that we will update you. connell: i thought that you were talking about imus for a second. dagen: he is too big time to drink mcdonald's coffee. connell: a new study revealing 37% of people do not ever expect to retire. the annual study by wells fargo. some of the other highlight, 59% say their top day-to-day concern is paying the bills. 42% say both saving and paying the bills is not possible.
48% are not confident that they will be able to save enough for a comfortable retirement. dagen: exactly. connell: we have to talk about this story involving angela merkel. not satisfied with what the president had to say. the u.s. ambassador has been summoned to talk about the phone monitoring. that is coming up. we will get to the bottom of it. or try to. dagen: taking stock in an athlete's career. you can invest in an athlete's future. a different idea. is it worth the risk? ♪
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marijuana. more than 7000 pounds were confiscated. ten vehicles and other illegal contraband. the boston red sox one last night. game two is tonight, also in boston. remember that scene in the first anchorman movie? ahead of the movie sequel, they will release a limited edition ice cream flavor. you can look for it in the next couple weeks. those are a few of your taste your headlines. back to dagen and connell. have your lunch first. connell: we like to hear you say that, though.
well done. dagen: just to update mcdonald's lawsuit over the coffee spilled, the woman who sued, there was a jury verdict. she never got the $3 million. the award was reduced to about half a million dollars by a judge. that case was settled for an undisclosed amount. connell: never revealed that number. dagen: not that we could find. connell: fair enough. dagen: hollowing. hate the holiday, love the candy. more americans plan to spend around a million last on the sweet stuff. connell: jeff flock joining us now from chicago. dagen: that is awesome. jeff: i wish i was rolling around in that narrow.
that is a lot of candy corn. >> we make about a million pieces and hour. the u.s. can the hall of fame, jelly belly is the company. what are you doing right now? we cook it up from a to a solid form overnight. jeff: we were talking earlier about the impact this halloween. fewer people participating this year. they are buying less candy. have you change production at all? >> we do not see it here. jeff: some people think it was
your ancestors that invented candy corn. >> we did not invent it. we are not 100% certain. jeff: some people love this stuff. to me, if it does not have chocolate on it, i am not a big fan. always fun to come here. >> these guys are experts. they know what they are doing. they are well-trained. dagen: i could watch that all day long. it is hypnotic. connell: that and the hairnet and headphones. thank you, jeff.
dagen: that is how serious this company is about candy making. connell: maybe cavuto want some candy corn. dagen: he better bring some. you come on the show, you better bring gifts. he will be talking about angela merkel and the allegations that the nsa was monitoring her phone. connell: we will have that coming up. we will keep an eye on the markets. ♪ the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades.
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>> at the half hour here is what is coming up on markets now. united states defects criticism that the nsa may have been monitoring the german leader's phone. neil cavuto standing by to talk about that. bank stake in an athlete's car rear. a new idea for investors but what about the risk? would it ever be worth it buying stock in an athlete? getting away from gold. the precious metal investors are looking at. dagen: a quick check on your markets. starbucks is opening a key shot right here in new york city, the first one, nicole petallides what is the stock doing? nicole: the stock is pulling back a little bit. starbucks is a winner year to date up 50%, they continue to expand profits despite a weak economy and one of their plans last year when they bought it is to make tea as popular as coffee. their idea is they put out coffee and everybody knows the different types of coffee and
they're trying to do the same thing with the opening their first tee bob in new york city on the upper east side, there will be food with ranges between $3 to $15, premium drinks between $3 and $6 and this is obviously the wave of the future for starbucks in addition to their most notable starbucks shop. dagen: i would rather drink dirty water of a hot dogs were kept in. i don't like tea. connell: how about hot coffee? foreclosure from a german magazine on a story we talk about that the un has been monitoring german chancellor angela merkel's phone conversations. she called up president obama yesterday and was a short her phone was not being monitored, not right now at least. they make the u.s. ambassador to germany is being summoned to meet with that country's for in minister over the allegations. what does neil cavuto think? he is sitting right there,
senior vice president and managing editor of fox business. not good. neil: this is another trust issue. the president told her don't worry, everything is fine and low and behold we find out you and your cellphone. this gets to be a pattern of trust. i am not blaming the president. it is down to really you can keep your doctor and can't keep your doctor but there is enough consistency, a pattern of saying one thing and realizing you or your underlings are doing the opposite end this feeds a global suspicion. connell: hurts his credibility. turnabout in the journal this morning, the president's credibility. neil: a lot of times, a lot of people say when you are president you are busy, but i also assume when you are in charge with something you are angry about, it came to light.
the health-care law, make sure your signature achievement is shepherded properly, very clearly to every detail. and missing in action feet in narrative. and out to lunch. that might not be the reality. if you say one thing and you deliver another. dagen: this is more a personal question but doesn't he care? ultimately his legacy is built largely on that very thing, his credibility and his position in the world and our position in world when he leaves office. neil: talking about this yesterday, i think every president has his signature thing he is passionate about. john kennedy could argue the space program and he watched every launched, every astronaut
he phoned after words, and given what we found out later about his love life jackie would have welcomed -- go ahead, don't let the screen door you on the way out of the rocket ship but between fdr, passionate about of big government programs he initiated ronald reagan with his tax, every step of the way for everyone of those actions and the labyrinth they had to go through in washington each president was finally attuned to how it was going. this health-care law whatever you say of it is this president's crowning achievement. he dropped the ball. if you think about it when the nsc revelations first came out, he said they went overboard and we will get to the bottom of it, then he apparently was intended and and that makes people think wait a minute, you say one thing, you do another, you were jazzed about this, he gets a reputation for note drama obama,
you are no drama and you work with a guy in the morning who is extreme drama so it is fine. connell: his phone calls by the way. neil: just the clubs you could collect. if you are going to be no drama which is fine, you have to exhibit it in a calm and thoughtful manner and not have in peer into the all live stage. that is the fear that he looks aloof. dagen: not just a loop that the administration but less than truthful. neil: that is what happens and we are veering off course here. it comes to the core of your credibility. when the world says you say would you can do and promise one thing and do another it cuts to the core of what you are about. say what you will about ronald reagan and whether he is a cowboy and too much or john kennedy, spending too much, they knew where he was coming from or
fdr with big government, they knew where he was coming from in a follow-through but the fact of the matter is a president can't just propose big things that has to follow up on big things and the little things you miss after the fact destroy the big things. connell: we're speechless after that. dagen: i am trying to not saying. neil: visit? susanna asked me -- i thought i would get the whole hour. connell: week and broadcast what she says in the year now. neil cavuto. he can say all he wants. neil: is she getting married on the fifth? dagen: yes. there you go. neil: she asked me to come. not now. haven't been invited. she asked me to come.
little dino. i wouldn't have interrupted. connell: she is watching right now. dagen: so you still working. work on neil's staff on your world. dagen: 4:00 in your world. neil: you don't feel bought passion. connell: we can skip it all the way. and for yours. connell: ever buy stock in an athlete? you are on camera. stock exchange for athletes. pretty much the bottom line of the story we have coming. what is it be worth it in the first place? dagen: youtube has a new music service coming. connell: dagen mcdowell as a new place to leave a bone when he is on vacation. this is why we have to wrap it up, the business idea that takes
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the wall street journal wants to cut expenses with a drop in financing. the job cuts include full time employees and contractors who will be impacted the most. and ford ceo alan malawi saying there is no change in the plan for him to stay as chief executive through the end of 2014, speaking on the automakers earnings conference call, nothing changed in the plan announced in november. microsoft is reportedly considering alan malawi to replace steve ballmer when he retires in a year. that is the latest from the fox business network giving you the power to prosper. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
try align. it's the number one ge recommended probiotic that helps maintain digestive balance. ♪ stay in the groove with align. connell: we talk about initial public offerings of the tiny nina may have had a chance with a pot belly ipo and held on for a year after the facebook ipo but what about an athlete ipo? you can get in on that now too but our question was would you
ever want to? to buy shares in an athlete? the company of in the first world stock exchange for trading shares of professional athletes and first stocks such as it is, tracking stock they are offering is a football player from the texans, arian foster. the co-founder but french joins us in the studio to talk about this, he got hurt, why are you getting hurt making this announcement? >> the only strange a little bit. okay. i will try to play skeptic on this because that came to my mind when i saw it. seems like one of these this is cool, to buy shares a lot of people are sports fans but why would i want to? i understand one of the angles on this, why the athletes would do it. aaron fosters the first when you have signed up so he figures, explain how it works he gets $10 million and you get a
percentage of future earnings. >> we signed the contract, a contract that defines his brand income in the future. connell: whether it is endorsements. >> current and future should he sign as well as what he does in his post career. connell: you up front him the money. >> contracts contingent on a successful offering and -- connell: then he gets it. >> $10 million and exchange we receive 20% of his future brand in come. connell: i can get it, talking about getting hurt but from his point of view maybe now have an insurance policy or god forbid i do get hurt i have this money but what about the other side of it? take the investor. why would someone want to buy shares in an athlete? there is no guarantee for me if i buy the stock that he goes out and runs 150 yards, stock may go up or may not dependent on how e his trading, why would it make
sense for me to take the risk? >> everyone should judge the risk on the run and come apparent determination. is an alternative unique asset that someone might decide fits their risk profile and portfolio. connell: well i be able to trade it? >> it is a new platform, the liquidity risk is one of the risks associated with purchasing this. connell: might not be able to unload them. >> that is a possibility. dennis: that is the risk. maybe that is not worth it. what about for you? why do you think this makes good business sense? >> he is much more than a pro bowl running back. he is a multi dimensional individual. we think his brand attributes give him the opportunity to have a post career around his brand and generate income into the future. that is our belief. dennis: what if he gets hurt? that seems to be not just for a football player but a football
running back the risk of injury seems to be trying to percentage out these things is pretty high. >> at the end of the day we took a comparable set of athletes, nfl running backs, who shared similar attributes, rushed for a thousand yards in three of the first four seasons, elected to a pro bowl. connell: like one count on that. >> there are 27 in a prospect as. people like what the indian tomlinson war will be parker to emmitt smith. so the range of years plane were 7 to 16 years. connell: curtis martin and others are comparable running backs. what is next? follow-up and see how this does. what do we watch? >> we filed publicly the registration statement last thursday pursuing down that path with the fcc. connell: no one else signed a besides foster.
i got to wait to see the ones to do it but we will see how you do and we will follow up on it. you got a lot of attention last week. you heard all about it, thanks for coming in. dagen: for your listening pleasure youtube is preparing an on demand music service with free and paid tiers of service. the free version would be supported with advertising. youtube is owned by google and this is the latest effort to compete with codify and other digital music providers. they pass radio as the major way that teens listen to songs. youtube would offer music videos as part of a service that youtube's music award, maybe this is in advance of the washington service, will be held in new york shortly next month, and m&m performing. it will be stream on line. connell: big business with cups coming up, better way to leave
your pets when you are going on vacation. dagen: if you are a pet owner you are always a winner and here are today's winners on the nasdaq. it's a growing trend in business: do more with less with ss energy.hp is help. soon, the world's most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. multiply that across over a thousand locations, and they'll provide the same benefit to the environment as over 60,000 trees. that's a trend we can all get behind.
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and turned around, it connects pet owners, carefully and gently babysit their pets when on vacation for much less money and they are joining me from los angeles. great to see you. i am not exaggerating. everyone has had a traumatic experience leading their dog at a kennel and what is interesting is this is a technology company in most ways. >> yes. this is a company based in part on technology and in part on customer service. we have 10,000 posts across the country who watch their dog in their own home like a member of the family. and we have a whole experience that ties this together. >> we believe in building this community where communities could get to know each other.
dagen: reading all the literature, leaving my little mixed breed puerto ricans dog. anybody in your care would take dogs into my own home because there's a picture of ramon, essentially 4 and it is that their dogs are well cared for, and be your god with the care giver, a 24/7, how do you go about abetting these individuals across the country? >> this is your dog and people treat their dogs like family members. we have a five step process, an online application, phone interviews, thousands of reviews across the community and we encourage you to take ramon and meet those you want to stay with to get a good feeling for that.
they make you raise fifty million in venture financing, you can correct me if i'm wrong. how do you keep growing this business? >> the biggest of our growth, people crazy about us, an average of 17 out of five stars. we know fundamentally people are excited about the service. to expand our team to deliver top-notch customer service on all levels and award winning care. dagen: i am totally serious about using the service or taking dogs into our home because you can never have enough little dogs around or big dogs. thank you so much. >> that is how we started. dagen: please come back and we will take more time to talk
about where you are going. connell: everyone has a war story. they make their in cages and don't get what are hang out with the dog then smell like god knows what. connell: yeah cattle killed my dog. i am serious. it is horrible. dagen: i am glad you waited to tell that story. connell: i will get angry while you are doing the interview thinking about. jerry kelly, robert katz, joining cheryl casone and dennis kneale in the next hour on markets now. dagen: developers who worked on health exchanges for the government on hot seat. we are live on capitol hill where tempers are flaring.
transparency and fairness for the american public. the broken promises are many. websites should have been the easy part. i am concerned what happens next. >> republicans don't have clean hands coming here. their effort obviously isn't to make this better but to use the web site and the glitches as an excuse to defund or repeal obamacare. dagen: just some of the opening remarks of the first congressional hearing into the botched obamacare rollout. i am cheryl casone with dennis kneale to take you through the next hour of markets now. contractors behind healthcare.gov girl by both sides, we are live on capitol hill where tempers are currently flaring. it is fares they, ford, full street ahead, record-setting quarter for the automaker, chief financial officer bob shanks coming up and southwest flying high on superfares and cheaper
fuel. i go 1-on-1 with chairman jerry kelly. all this and more in the next hour of markets now. >> not exactly coming together in the health-care debate. cheryl: is getting more -- tempers flaring was the best way to put it and a lot of finger pointing and congress is that finger pointing. one of theirite things to do. >> getting uncomfortable to see the glitches the blood talking about. stocks every 15 minutes. nicole petallides on the floor of the stock exchange. good manufacturing data out of china. nicole: that news, good economic news from abroad in china shows obviously pickup in economic activity and that gives a boost on sentiment abroad globally and right here at home as well. dow jones industrial average up 83 points sitting at 15,496,
getting closer, 15,900 not far off an all-time high as well. gains of 1/2%, diaz and b 5 under of 1/4% and we are but with a paras, not the winning streak, yesterday was the first down day in six, back to the momentum to the upside. we have a lot of movers, irene season, names like ford to the upside. we have been watching other pieces of news like starbucks opening in manhattan so there are story stocks in particular from 3 am and others with earnings to the downside so there are a lot of stories we have been following. the big picture is we have a bear rose once again. cheryl: one of the contractors behind the. filled obamacare exchange class a the web site will be fixed in time for people to begin obtaining benefits on january 1st. this as they face tough questions from congress.
rich edson live from capitol hill with the latest on what he and i were saying. a lot of finger pointing. >> another day another hearing, federal contractors paid to fix the web site, create this web site, of the contractors says he tried to sign on and can sign on and get insurance through the web site he helped design. the main contractor, cd-i federal says it was a change away from anonymous browsing that allows people to go on these websites and comparative shot and check out prices for health care. now the federal government makes you sign up for health care first before you can actually go and look at those prices and their pointing thing is that another company that says italy had ten days before these websites went live to test this new genes or were told about this from the administration that you could no longer anonymously brows and that is the finger pointing going on, change from the administration so lawmakers are going back and
forth with the contractors and lawmakers are spending records arguing with one another. >> it only applies when there is prompt information being provided by that is not at play here today and, no health information is required in the application process and why is that? because preexisting conditions don't matter. so once again my republican colleagues trying to scare everybody -- i will not yield to this monkey court. >> this is not a monkey court. i am not yielding. >> the lead contractor when asked how long it would take to fix the problem, said i prefer not to guess. cheryl: tempers flaring, rich edson, amazing hearing, live in washington, thank you. dennis: ford beating estimates setting the record for third
quarter pre-tax profit up $2.6 billion. stock did a nice bounce today on that news up 1.5% and let's get to bob shank who joins us from ford headquarters in dearborn, michigan. good numbers, nice quarter. how much of this is a sign that the u.s. economy is healing versus a sign of board itself does a good job at what it does. >> it is a combination of both. the economy is contributing but very modestly. there is a lot of replacement demand in the industry which is driving the industry beyond what you think when you look at the top line gdp numbers but a lot of this is a round of restructuring ford did over the last 7 or 8 years, the product we are putting out, strong brands, that is flowing through to the bottom line and giving rate margins as well. dennis: how much of the surge in sales is because of filling the pent-up demand and when does
that nice growth end? we are back to steady state in the and the demand already met? >> the industry is growing and that is in part related to the economy, because sales being driven by the housing recovery and energy boom on top of that but we're growing our share as well and growing faster than the overall industry, we are doing a bit ourselves. we think there's more out there in terms of replacement demand but at some point we have to see the economy grow more robust, create more jobs and that will drive more naturally greater sales once replacement demand is satisfied. dennis: i remember in 2007 the ford f 150 truck provided 120% of profits at the entire company, lost money on little cards you had to make to lower your fuel mileage and the federal regulations. today the of 4150 accounts for what percentage of that profit
versus 120%? >> we make a lot of money on trucks and suvs, utilities. the thing that really changed is we are making money across the portfolio, not as much, that is normal in the overall industry, not just a forced phenomenon but the big difference is before we make a lot of money on trucks we lose a lot of money as you said on smaller vehicles and other parts of our portfolio that has really changed. the rest of edge is contributing as well. dennis: a 120% figure is down 80% provided by the of 150? >> i don't think we ever provided that 120%. we are very happy with the contribution of the f-series but the whole portfolio was contributing. dennis: how gossamer is this for a rebound? how easily could dissipate? if gasoline suddenly went to $5 a gallon and truck sales plunged, it is no more?
>> back to what i said, that is the big difference, great fuel efficiency across the line, super efficiency opportunities that we can offer customers with smaller vehicles and midsize vehicles, that is where the ship them and where we go and turn a profit. i don't see that having an impact on the ability to turn a profit. might have an impact on margins because of the contribution of a larger vehicle. we are continuing to see improvements in other parts of the portfolio. dennis: the operating profit margin is $0.07 on the dollar. that is a gargantuan effort to make $0.07 on the dollar. in the latest industry, what is the highest level you can get, is $0.07 it. and various means over the last few years, what is the top?
>> ongoing basis in the industry 8% to 9% operating margins would be considered outstanding. almost at the level, above the level in north america so the big opportunity which we started to see the season of opportunity on this point, in the regions outside north america, they contributed to year over year improvement in margins and we had a slight decline in north america, it was in europe and south america and asia pacific that drove the improvement in margins. dennis: you have your losses in europe. one last thing. curve ball, get ready. alan mulally, your ceo, knows a lot more. he knows about disk drives. does that mean he wouldn't make a good high-tech executive at a company like apple? >> that is way beyond me. all i know is he is a great leader, great individual, great person, a pleasure to have
worked with him and continue to work with him and i look forward to doing that through the end of 2014. dennis: that answer basically said yes, he would be great at apple. thanks for being with us. congratulations on a great quarter. cheryl: you might consider sticking to the road this holiday season. the average price for an airline ticket thanksgiving we got over 9% year over year. the report by airlines, for the week of christmas up over 7% year over year with an average ticket price of $370 and that does not include the taxes, the fees or free peanuts which for the most part are not really free anymore. those higher ticket prices boosting earnings at southwest airlines going one on one with the airline ceo and chairman gary kelly.
cheryl: headlines on boeing, one of the dow components, the stock taken away, a couple things crossing barkleys raising the price target on this. and barkley says this stopped going 145. and looking at a new deal between israel airlines and boeing, two more 737s will be awarded. that is one thing we are
watching. take a lick your major market averages and as we look at the sectors, boeing costanza, a mixed bag right now. let's bring in nicole petallides, another big day for earnings and duncan coming out with strong earnings. >> interesting as we watch a name like mcdonald's which shows some weakness duncan brand on the other hand is doing very well. it is another area of strength that they worked so hard to have more coffee and sandwiches and that has helped them along in the latest quarter. you see the shares are down 2.5% but we have seen a good start to the day. overall we are watching the stock pulling back at the moment. we are also having the ceo later on the fox business channel "after the bell," nigel travis will be on with us as well but they continue to expand their offerings to their customers and baskin-robbins is also under their umbrella and both chains
have seen growth. cheryl: thank you very much. dennis: what is bugging me is the detroit bankruptcy. an american tragedy, a great old city devastated by decades of decline in manufacturing but before it also is a self-inflicteds involving selfish and shortsighted politicians and people who want to sacrifice from everyone but themselves. they troy those $8 billion in obligations it can't pay but one city-owned property owns more than $10 billion in precious assets that can be sold, assets that are held in storage and rarely ever gets seen. the default institute of art evans masterpieces by van gogh, diego rivera, displays 350 works at any one time but its collection spans 66,000 pieces worth $10 billion or more but city leaders refuse to sell any of it.
museum director telling the new york times, quote, i would do anything i could for pension holders and their problems but those problems have nothing to do with the d i a. yes they do. this is a city with thousands of abandoned buildings and crime and corruption and you want to hold onto your precious than golds? should bankrupt before sell-off its art collection to raise $10 billion in cash? what do you think? cheryl: a lot of responses on twitter. start tweeting right now. cheryl: no problem being in cash, taking of your interview chairman and ceo jerry kelly coming that next. dennis: healthcare.gov in a freefall even misquoting customers their prices after 40%.
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>> 21 minutes past the hour, your fox news minute. labor groups are trying to get more compensation for the victims of april's deadly factory collapsed in bangladesh, 1100 workers died in that crash. retailers signed a pact aimed at building safety been getting money to the victims is taking a lot longer. those groups are seeking $74 million for survivors and families of the deceased. president obama proposed giving the marine corps uniform is a new unisex look, the new hats are considered by some less macho. the old one which has been around since 1922 on the left side of your screen, the new one on their right looked pretty similar to me. a no go for another brett favre for return to football. the st. louis rams approached him to help with their coat back woes but turned them down. it was a career end in 2010, the rams are looking to replace sam
bradford who has a knee injury. those are your news headlines on the fox business network. back to you, cheryl. cheryl: a broadcasting career awaits him. thank you. a major earnings win for southwest airlines. the largest domestic carrier by passengers reporting very quarter earnings of $0.37 a share, revenue for$.5 billion. shares southwest, hitting a new all-time high, 1690. the stock is at 1687 just $0.03 shy. the number for the company, passenger revenue rising 5.1% beat analysts' estimates. i asked gary kelly of the streak would continue in future quarters. >> an interesting year, we had the effect from the tax increases and budget cuts so the spring was a little soft even though we had a record-setting
quarter. july, august, september have been very strong. and the government shutdown also looked very strong. overall unit revenue is up 4.5%, very solid. the passenger component was up 5.1%. whether it is sustainable in the fourth quarter and into next year at that level i don't know but somewhere in that neighborhood is fine and we will be pleased with that continuing over the next four or five quarters. cheryl: how are you feeling about solid bookingss and render holiday bookings? we are hearing from a lot of other airlines that there's a lot of interest and fare hikes that are going into effect for the holidays using the same type of interest from passengers. >> travel demand again is strong. the only thing that might throw it off course is the government
shutdown. hopefully most of that is behind us and of course october is almost over with as well so the bookings for november and december look very strong with holiday travel. i am not sensing that anything is going to change from the trends in the third quarter. i am not predicting we will grow at the same rate because there will be some impact from the government shutdown but nonetheless i think we are going to continue to have a strong performance. cheryl: also greater competition, the tentative landscape is changing for you right now with american and u.s. airways and they gotta deal with the doj happening and have you been working behind the scenes to prepare for this new airline that we believe will be created? >> behind the scenes and in front of the scenes we are working like crazy, transforming
southwest for two or three fundamental reasons. number one is the fact that energy prices are so much higher than they were a decade ago. secondly we have a reconstituted competitive landscape. every legacy carrier has gone bankrupt and significantly restructured themselves and their much better competitors today than they were five or ten years ago. cheryl: how was the transition going? over 20 years since you bought it. how is the integration going? analysts have been questioning a slow go for the combination of the two. how are you feeling about it? >> i am feeling terrific. it is right on plan. those folks just don't know what our plans were when we bought them in 2011 so our target has always been to have them integrated by the end of next year and there are two major things that are remaining.
everything else is essentials redone but those two things are to create the international capabilities within southwest airlines, that will be ready next year. until that happens airtran cannot fold those operations into southwest. secondly, we decided not to keep the 717s, struck a deal to faze those out of our fleet late this year and that work is right on track so those 717s will be replaced by bringing in new or used 737 equipment. cheryl: thanks again to southwest airlines, chairman and ceo gary kelly. the right amendment out of left field. i year from now expires, southwest will go nonstop anywhere in the country out of that smaller airport in dallas. connell: stop it from doing it. would have lowered prices for
consumers. southwest is a greatly run airline and badly run business. if it is your birthday do you trust it with your health care coverage? the black ice for, healthcare.gov continues. cheryl: black eyes to burn with another woman suing mcdonald's over hot coffee coming up in a west coast minute. take a look at some of the winners of the s&p, pulte, be right back. [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed
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tech giants microsoft and amazon reporting after the bell. nicole: another exciting day on wall street. so many names on the move. we will be focusing on microsoft and amazon as they both come out with their quarterly numbers so we will be watched in a forecast whether not they meet expectations. microsoft up 28%. we will be watching the tech giants. how about the tech heavy nasdaq? brings me over to what we are seeing at the nasdaq. they reported their numbers yesterday, and revenue was boosted by acquisitions. actually hitting a new annual high. we have heard in a 4:00 p.m. show, i want to tell you what he said, they were open to more acquisitions even looking at the european stock exchange which is the unit of nyse euronext. he will be on in that hour.
we have done well with higher profits. cheryl: they have upped their price target on it. thank you so much. dennis: a congressional panel grilling the designer of the obamacare website healthcare.gov over glitches that insurers and consumers have been facing. as white house orders a tech surge to ail the fixin fix the g site. we appreciate it. first, tell us about the story you wrote lifting off of other reports about the healthcare.gov site and is up lowering the price by 20 or 30% off of the real price i will end up paying. how does that happen? >> yesterday it was found out that the obamacare website is globalowballing the prices by ah as 50% or more because it failed to ask people's birthday. dennis: how hard is it to design into the website, and why wasn't
that in there? >> at a middle school programmer should have been able to do it. dennis: you are a tech guy, you have seen any number of customer flameouts over the years. government thinks it can fix this in six weeks. basically they have granted an extension to march 31, i think it is. can government fix these flaws in six weeks? >> the short answer is nobody knows it secretary sebelius is stonewalling the press and will not let any information out so we have no idea how bad the problems are. dennis: this company cgi they have used before and on this one, you know something about their work in canada, don't you? >> they are a long-term government contractor awarded hundreds of millions of dollars from the u.s. federal governme government. we know the previous record on a similar medical registry in canada was completely botched, ultimately the washington post
reported they abandoned the project. two years after that, they are now building our massive government website. dennis: i follow it for a long time and i never heard about cgi a lot. i wonder why they did not go with ibm, amazon, google, companies who are specialists in e-commerce and noise thing or two about this area. >> you and everyone in the tech industry wants to know that. the obama administration had promised a procurement reform. how these big government contractors get business. it was supposed to allow scrappy startups and other smart people to get the job if they had the best ideas. for whatever reason, they didn't come through on that promise and now we have a mediocre programmer building the website and failed. dennis: on this latest price lowballing, we need 7 million people to sign up to get this thing lifted.
if i end up learning my package will cost 30, 40% more i may not sign up at all because after all they cannot rule out a pre-existing condition. if you are advising the white house, what can you tell them to fix this text? >> what they should have done is what they promised to do. the government should not be in the business of making these large websites. you should have done with the airline industries does. farm out the pricing data to other developers like orbitz or travelocity and they can make the price comparison website. this is what the obama administration had promised to do, give business data to other private businesses who can do it far better than the government. now the obama administration made an exception for web-based entities. these orbits like websites to create them. but they won't be online for a couple of weeks because the state and the federal government refused to cooperate with them in a timely manner. dennis: is this a political
party problem? it is not like the republicans would have done a better job at this, or is this more of a government not that efficient problem? >> this is a government problem. if the president cannot solve the problem, don't think anybody on the republican side could have. the real solution is for the government to give out the data to the private sector. something they promised to do but did not fulfill. dennis: thank you for being with us today. cheryl: german chancellor angela merkel apparently not satisfied with the phone call she had with president obama. u.s. ambassador summoned to talk about the phone monitoring question with german officials this morning. the president spoke with merkel yesterday and assured the german leader her phone was not being monitored, but the story brings up a bigger question of trust. there are companies that could get hurt in all of this. it has already beenthat ibm wasd snowden scandal were
double-digit revenue was lost in the middle east. if germany decided to turn to its own software giant, the likes of hewlett-packard and oracle could be hurt along with big blue. coming up next, bundle up. we will be hitting the slopes with one company that helps to redefine and make some money on skiing and the resort industry. dennis: apple's long-awaited tv seems to be frozen in time. why apple may want to move the release date to never. meanwhile, take a look at 10-year treasuries.
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in the plan for him to stay as chief executive through the end of 2014. speaking on the third-quarter earnings conference call, nothing has changed for my leadership plan announced last november. microsoft considering him to replace steve ballmer when he retires in less than a year. that is the latest from the fox business network, giving you the power to prosper.
cheryl: winter is right around the corner and soon ski season will be in full swoon. that is where my next guest comes in. shares of his company's stock ticker symbol climbing a mountain of gains up 22% over the past year. join me now for this week's "on the road." >> we have had a traffic couple of years. cheryl: one thing i saw was your
season passes, lot of good volume. double-digit percentage gains, this is the fourth quarter we are talking about now. >> up 20% is what we announced for this upcoming ski season. it is because we sell this epic season pass. you can ski as much as you want across all of our resorts. 10 in the u.s., 26 in total because we added six in france, five in austria, a resort in bolivia. people love to have the option. they see it as an amazing value. cheryl: you have some of the top ski resorts in the nation. bear mountain, vail, others. the international story seems to be a big one for you right now. do you find it is more u.s. do you find it is more u.s.
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cheryl: time for your "west coast minute." appetite growing investor housing market. institutional investors those picking up 10 homes per year accounting for 25% of all residential sales in nevada last month up from 14% in august. some are beginning to pull back due to higher home prices. a 74-year-old california woman is suing mcdonald's for negligence because she was injured by spilled hot coffee. seeking damages because the coffee was unreasonably hot in excess of 175 degrees fahrenheit. that is similar to a widely publicized and 92 suit filed against mcdonald's by an elderly woman from albuquerque who received $2.9 million settlement. amazon received additional approval to build a huge office complex in the middle of seattle.
the biodome as it is being called is actually three domes that'll intersect from a five story complex with offices, dining areas, retail stores. they will sit next to amazon's giant new campus. take a look at the stock right now. in the green. stocks up more than $4 right now, up more than 1%. that is your "west coast minute." dennis: so, should bankrupt detroit sel fell off its art collection to raise $10 million in cash? jennifer says why should they sell it for the corruption in the city? we voted to pay extra taxes to save the art. it stays, but detroit should sell any and all assets like any other company. and taking other direction sang when individuals need money, they sell or pond things of value, why should detroit be any different? monica says they should not sell itself, they should do whatever it takes to preserve it. which is really nice and artful.
cheryl: i guess you could call this backdoor banking. growing r consumers that are trying to pawn shops. traditional bank loans drying up. dennis: as washington grilles contractors to set up the trouble health care website, just where are the hollywood celebrities out supporting it? cheryl: and not keeping silent on this one. tvs hercules joining adam and lori next hour with his latest fight with obamacare coming up next. dennis: only hercules can take it on.
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the subsequent sluggish recovery. a broad-based popularity of pawn shops is undeniable. lori: how to step up and fill the void. what he calls a poor man's bank. adam: was the nsa monitoring angela merkel's phone? lori: it will take a big effort to fix obamacare. you know him as tvs hercules. adam: first, we want to chat markets. nicole petallides. nicole: the s&p 500 record high